RBA Interest Rate Hold: What This Means For The Property Market In Kellyville

The RBA has left the interest rate at an unchanged 1.5%, so what does this mean for the property market in Kellyville and Plumpton?

There were no surprises when the Reserve Bank of Australia met in August and they once again left the official cash rate unchanged at 1.5%.

Whilst it has been an unprecedented twenty-four months, economists rightfully predicted the unchanged rate. Many are now suggesting that we won’t see an increase for twelve months.

So what does all this mean for our property market in Kellyville?

Conditions in the Sydney housing market, across the board, have certainly eased over the past six-months and nationwide measures of rent inflation remain low.

With pressure on the banks to be strict in lending and pressure on investors, housing markets, particularly in Sydney has changed.

Therefore if you are looking for a principal place of residence and have a high-quality credit rating – now may be the time to buy, with the property market in Kellyville the way it is.

Likewise, if you are looking to sell, now may be your time, with economists predicting that we won’t see property prices increase again until 2020.

National house prices fell in July for the 10th consecutive month, according to CoreLogic, which showed a 0.6 per cent drop from June – bringing the annual rate of decline to 1.6 per cent, the fastest since August 2012.

Between falling house prices, potentially weaker hiring and economic growth, and concerns about the outlook for household spending – Australia’s debt-to-income ratio is a record 190 per cent and among the world’s highest.

The problem at the moment is that consumers aren’t spending enough, because the average Australian, doesn’t have enough.

With high debt levels, rising energy prices, and no wage increases, families are struggling; many on one income and to add salt to the wound for many in Sydney and Melbourne, the value of their homes is declining.

With all this said the property market in Kellyville and Plumpton, in particular, is still doing exceptionally well.

With the median house price in Kellyville being $1,219,000 and a median $650 weekly rent, we are still seeing some growth in this area with a huge 466 sales in the past year.

Plumpton too has seen some growth. With a lower median house price of $674,000 and an annual capital growth of 7.74%, Plumpton has become an attractive option for those buyers looking for a house at an affordable price.

Interestingly, unit prices have seen a growth of 12.7% over the past year, making the median price $629,990. It is rare that we see the median house price and unit price so close together.

Whilst the rest of Sydney is feeling a pinch, we are excited to see some growth regarding the property market in Kellyville and Plumpton.

With owners selling and capitalising on their growth to date, many first home owners, who are looking for homes to live in, or those who are selling and looking to re-enter the market in a downsized property, are finding now is the time to buy and sell.

With thanks to the low-interest rates and attractive median prices and rental return, Kellyville and Plumpton have become hot, hot, hot!